Cash Budget The Hill Company prepares monthly cash budgets. Relevant data for the year 2019 is as follows: Budget Items JanuaryFebruary Sales $360,000$400,000 Merchandise Inventory Purchases 165,000 180,000 Selling and Administrative Labor 90,000 100,000 Selling and Administrative Expenses 120,000 125,000 All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 15% in the second month following the sale. 5% of the sales are expected to be uncollectible. Merchandise purchases are all on account. Hill pays its accounts payable 60% in the month of purchase and 40% is paid in the month following purchase. All other items listed above are paid in the month incurred. The selling and administrative expenses include a monthly charge for depreciation of $4,000. Other Data: 1. Credit Sales; November 2015, $260,000; December 2015, $300,000. 2. Purchases of merchandise; December $100,000. 3. Other cash receipts; January A collection of a note receivable $15,000. February proceeds from the sale of a short-term investment $6,000. The companys cash balance on January 1, 2019 is expected to be $70,000. The company wants to maintain a minimum cash balance of $50,000.